financial report january 20175645dc3d23191c2c19f8-8b4c5f6c9288f7f045275d4bed37bedc.r0.cf… ·...

January 2017 Report

Treasurer’s Report to Council 1 of 4

Financial Report – January 2017 Presented to Faith Lutheran Church Council

February 12, 2017

The Finance Ministry Team met on February 7, 2017, and covered the following items.

Opening prayer

Review of January 2017 financial statements

Discussion of current financial position

Audit report for 2015

Recommendation on cash situation

Closing prayer

Financial Summary:

Income/Expense (k$) January Delta to Budget

Income 102.6 + 3.4

Expense 85.1 -13.4

Net +17.4 +16.8

Cash Position January Change from December

Operating 26.7 +17.5

Conduit .8 +.3

Unallocated 24.3 -.1

Benevolence Reserve 17.8 +.4

Branching Out 5.0 +3.4

Total 74.6 +21.5

Monthly Highlights:

Reporting change. We have made a minor change in the detailed financial statements. We have

included a new set of categories to track fees (income) for events. In prior years, we have netted

the income received for fees in the matching expense line. This caused distortion in the expense

lines (some months we would have negative expense). The finance team feels this is a better

representation of the financials.

Income for January was $102.6K.

o Total income was down by $12.1K vs. December and was $3.4K above the ministry plan

for January. We did receive in January the second half ($21K) of the large gift ($42K)

we have discussed in the past. We received the first half of that gift in November of 2016.

o Total income averaged $20.5K per week in January. This was a drop off from the

significant December average of 28.3K.

Expenses paid in January were $85.1K. This was $13.4K below the ministry plan. Spending was

down by $14.7K from what was spent in December.

January 2017 Report


o Missional expenses were $11.6K below the mission plan for the month. As with last year

we have budgeted the second pastor and contemporary music position for the entire year.

We are also understaffed on one full time position AV, and several part time positions.

o Operational expenses were $1.8K below the ministry plan. The actuals reflect a

mortgage payment of $15.0 K.

January was a good month and continued the very good result in December. The key driver was

the second portion of the large gift (Thank you God!). We improved operating cash by $17.5K

in January a big improvement.

The overall cash position improved by $21.5K and is at $74.6K. Operating cash flow is now back

to a minimum manageable level, but it remains an ongoing concern.

As discussed in previous Council meetings, we continue to employ the following strategies to

maintain sufficient operating funds to sustain our ministry:

o As noted earlier, we are making the lower $15K ($8 K in principal and $7 K in interest)

monthly mortgage payment. We will maintain this level of mortgage payments until the

land is sold, at which time we will pay down the mortgage with the full amount of the

proceeds and renegotiate a new and much lower payment schedule. This lowered

payment has now been accepted and documented by the Mission Investment Fund for the

next three years. As reviewed with council in the last council meeting, MIF considers us

one month in arears due to the missed payment in January of last year, we have no ability

to make up that payment now.

o Reduce benevolence payments by 50% until our cash position allows us to resume those

payments in full. The 5% going directly to the ELCA will continue to be paid as was

done in January.

o Considering our cash situation, we have made a prioritized list of which bills to pay in

the following order: (1) Payroll, (2) Utilities, (3) ELCA Benevolence, (4) Credit Card

Bills, (5) Mortgage Payment, (6) Required Maintenance Expenses, (7) Other Mandatory

Bills, (8) Discretionary Program Expenses.

While we are extremely challenged, we are also Blessed by our Savior, daily. Through continued

Gratitude, Faith, Prayer, and Diligence we will see our way through the challenges.

GOD IS GOOD ALL THE TIME!

Detailed Summary of January 2017 Financial Statements

Income

For the month of January 2017, total operating income was $101.1K. Regular offering was $94.8K, and

other income was $6.39K. Most the other income was noisy offering $.8K, and rental income of $5.5K.

January 2017 Report


Activities Income, (the new category of income), recorded income of $1.5K. Most this income ($1.1K)

was for event fees for high school youth events. This will show up as expense later in the year.

The January 2017 financial report reflects $19K average weekly offerings for the month. January was a

5 week months.

Kari (Operations Director) and Scott (Accountant) will continue to coordinate closely to make sure bank

balances remain positive, paying bills in a prioritized manner. The Finance Ministry Team will

communicate with them and respond appropriately as circumstances dictate.

Expenses

For the month of January 2017, total operating expenses paid were $85.1K. This amount reflects debt

service of $15.0K. It also includes 5% benevolence/mission support payment, equal to $5.0K. Overall,

total expenses were $13.4K below the January budgeted expenses per the 2017 Ministry Plan of $98.5K.

Spending continues to be tightly managed.

Missional expenses were $6.2K, this was $1.1K above the budget for January. Of the spending

in this category, $5.9K is benevolence (ELCA and Noisy).

The administration category was $12.7K below the mission plan mainly due to the two positions

not being filled. Pastor salary, housing, benefits and administration salary represent $8.0K of the

under run. Administrative salaries are also under budget due contemporary worship leader

position and the AV position being open. The areas over budget are telephone, Copier, and

Payroll services. Kari is checking on the copier costs as the expected savings have not

materialized.

Operational expenses were below the ministry plan by $1.8K. We were over budget in Audio

Visual ($1.6K) and general maintenance ($1.2K). Running slightly over on utilities for the

month. The actuals also reflect a mortgage payment of $15.0 K.

Financial Trends - Trailing Thirteen Months

The attached report includes a chart/graph depicting financial trends for three key financial categories

(offerings, expenses and net income/loss) during the trailing thirteen months (to include same month last

year). In most cases, the peaks and dips reflect expected seasonal ebb and flow.

Cash Balances

The overall January cash balance was $74.6K and increased by $21.5K from the December balance. The

operating fund had a positive balance of $26.7K and improved by $17.5K from December. The total of

conduit funds was $.8K, increasing by $.3K from December. The unallocated fund decreased by $.1K

to $24.3K. The Benevolence fund (Tithe from branching out) increased by $.4K to $17.8K. Branching

out funds (less the tithe) has a positive balance of $5.0K and increased by $3.4K.

Building Maintenance Reserve

The January maintenance reserve balance is now zero.

To the extent practicable, additions to this reserve are planned to be resumed in the future and continue

until it is restored to an appropriate level (to be recommended by the Finance Team). Due to our current

financial situation, this is unlikely to happen for some time.

January 2017 Report


Unallocated Reserve

As of January 2017, this fund balance is $24.3K. This decreased by $.1K, from the December balance.

It is effectively being used to cover the operational shortfall.

Branching Out Campaign

The total received as of the end of January was $177.4K.

Campaign expenses have totaled $5.4K. Campaign disbursements have totaled $167.2K (this includes

tithe of $17.4K). Ending cash balance $5.0K. No significant expenditures remain to be paid.

Other Matters for Council Information

January Unpaid Bills Carried Over to January

As of the end of January, all outstanding invoices have been paid. As identified earlier, MIF considers

us one month in arrears due to the missed January payment last year. I have instructed the accountant

to continue to make one payment per month, unless instructed by the council.

Debt Service Program

We did make a payment of the revised monthly mortgage obligation in the amount of $15 K to MIF in

January. At this level, we are still paying $8 K in principal to go with the $7 K in interest. We will

continue to make this payment monthly as we are able, until the 3.5-acre parcel of excess land is sold.

At that time, we will pay down the mortgage with the full amount of the proceeds and renegotiate a new

payment schedule.

Finance Ministry Team Action Items

None at this time

February 2017 Report


Financial Report – February 2017 Presented to Faith Lutheran Church Council

April 1, 2017

The Finance Ministry Team met on March 6, 2017, and covered the following items.

• Opening prayer

• Review of February 2017 financial statements

• Discussion of current financial position

• Recommendation on cash situation

• Closing prayer

Financial Summary:

Income/Expense (k$) February Delta to Budget

Income 68.7 -20.2

Expense 81.8 -9.9

Net -13.1 -10.3

Cash Position February Change from January

Operating 13.6 -13.1

Conduit .7 -.1

Unallocated 21.3 -3.0

Benevolence Reserve 18.9 +1.1


Total 70.9 -3.7

Monthly Highlights:

• Income for February was $68.7K.

o Total income was down by $33.9K vs. January and was $20.2K below the ministry plan

for February. We did receive in January the second half ($21K) of the large gift ($42K)

we have discussed in the past. We received the first half of that gift in November of 2016.

In addition, January was a 5-week month.

o Total income averaged $17.2K per week in February. This was a drop off from the

January average of 20.5K.

o No matter how you cut it, February was not a good income month and reverses a very

positive trend in December and January.

• Expenses paid in February were $81.8K. This was $9.9K below the ministry plan. Spending was

down by $3.3K from what was spent in January.








o Expenses will increase moving forward as we have filled the AV position on the staff.

• February was not a good month and reverses the good December and January. This will need to

be monitored closely to see if this was just an anomaly or reversion back to 2016 giving levels.

We consumed $13.1K in operations cash in February, and almost completely reversed the

January operations cash improvement.

• On a bit brighter note the overall cash position only declined by $3.7K due to a strong month in

branching out contributions. Overall cash flow is now at a minimum manageable level, but the

operating fund level of cash remains an ongoing concern. The unallocated reserve reduction was

the $3.0K support the council approved at the January council meeting for Briarwood.

• As discussed in previous Council meetings, we continue to employ the following strategies to








one month in arears due to the missed payment in February of last year, we have no ability




done in February.





• While we are extremely challenged, we are also Blessed by our Savior, daily. Through continued


• GOD IS GOOD ALL THE TIME!

Detailed Summary of February 2017 Financial Statements

Income

For the month of February 2017, total operating income was $67.9K. Regular offering was $65.8K, and




Activities Income, (the new category of income), recorded income of $.7K. Most this income was for

event fees for high school youth events. This will show up as expense later in the year.

The February 2017 financial report reflects $16.5K average weekly offerings for the month. February

was a 4-week month. This is a reduction from $18.4K in January, however without the special gift,

giving would have been $14.8K per week in January.




Expenses

For the month of February 2017, total operating expenses paid were $81.8K. This amount reflects debt

service of $15.0K. It also includes 5% benevolence/mission support payment, equal to $3.4.0K. Overall,

total expenses were $9.9K below the February budgeted expenses per the 2017 Ministry Plan of $91.7K.


• Missional expenses were $6.9K, this was $1.0K above the budget for February. Of the spending

in this category, $4.1K is benevolence (ELCA and Noisy).

• The administration category was $9.9K below the mission plan mainly due to the two positions



position and the AV position being open. The areas over budget are Copier, continuing education,

and Payroll services. Kari is checking on the copier costs as the expected savings have not

materialized.

• Operational expenses were below the ministry plan by $1.9K. We were under budget in all major

categories of expense in February. The actuals also reflect a mortgage payment of $15.0 K.





Cash Balances

The overall February cash balance was $70.9K and decreased $3.7K from the January balance. The

operating fund had a positive balance of $13.6K and decreased by 13.1K from January. The total of

conduit funds was $.7K, decreased by $.1K from January. The unallocated fund decreased by $3.0K to

$21.3K. The Benevolence fund (Tithe from branching out) increased by $1.1K to $18.9K. Branching



The February maintenance reserve balance is now zero.






Unallocated Reserve

As of February 2017, this fund balance is $23.3K. This decreased by $3.0K, from the January balance.

It is effectively being used to cover the operational shortfall. The reduction in the unallocated reserve

in February was the council approved $3.0K urgent support of Briarwood.


The total received as of the end of February was $188.7K.


tithe of $17.4K). We did receive a refund for the stand for the baptismal Font in the month of February

of $1.7K. Ending cash balance is $16.4K. No significant expenditures remain to be paid. The finance

team did discuss the plan to distribute the tithe to the FLDS, this has been deferred to see how cash

comes in the next several months.


February Unpaid Bills Carried Over to February

As of the end of February, all outstanding invoices have been paid. As identified earlier, MIF

considers us one month in arrears due to the missed September 2015 payment. I have instructed the

accountant to continue to make one payment per month, unless instructed by the council.



February. At this level, we are still paying $8 K in principal to go with the $7 K in interest. We will



payment schedule.


None at this time

March 2017 Report


Financial Report – March 2017 Presented to Faith Lutheran Church Council

April 20, 2017

The Finance Ministry Team met on April 4, 2017, and covered the following items.

• Opening prayer

• Review of March 2017 financial statements



• Closing prayer

Financial Summary:

Income/Expense (k$) March Delta to Budget

Income 75.3 -14.8

Expense 86.2 -9.3

Net -10.9 -5.5

Cash Position March Change from February

Operating 2.7 -10.9

Conduit .9 +.1

Unallocated 22.2 +.9



Total 70.2 -.7

Monthly Highlights:

• Income for March was $75.3K.

o Total income was up by $6.6K vs. February and was $14.8K below the ministry plan for

March. February was a 4-week month.

o Total income averaged $18.8K per week in March. This was an increase from the

February average of 17.2K.

o March showed some improvement from February, but we continue to run below the

ministry plan for income. We are running behind by $31.6K for the first quarter.

• Expenses paid in March were $86.2K. This was $9.3K below the ministry plan. Spending was

up by $4.4K from what was spent in February.





March 2017 Report



o Expenses will increase moving forward as we have filled the AV position and the

outreach position on the staff.

• March was not a great month but income did increase slightly from February. This will need to

be monitored closely. We consumed $10.9K in operations cash in March, and reduced the

operating cash balance by $6.5K from the December 2016 ending balance.

• On a bit brighter note, the overall cash position only declined by $.7K due to continued strong

contributions to the Branching Out campaign. Overall cash flow is now at a minimum

manageable level, but the operating fund level of cash remains an ongoing concern.









one month in arears due to the missed payment in March of last year, we have no ability




done in March.








Detailed Summary of March 2017 Financial Statements

Income

For the month of March 2017, total operating income was $74.1K. Regular offering was $71.4K, and

other income was $2.7K. Most the other income was noisy offering $1.7K, and rental income of $1.0K.

Activities Income, (the new category of income), recorded income of $1.1K. Most this income was for

March 2017 Report


event fees for high school youth events. This will show up as expense later in the year.

The March 2017 financial report reflects $17.9K average weekly offerings for the month. March was a

4-week month. This is an increase from the $16.5K received in February, an increase of $1.4K per week.




Expenses

For the month of March 2017, total operating expenses paid were $86.2K. This amount reflects debt


total expenses were $9.3K below the March budgeted expenses per the 2017 Ministry Plan of $95.4K.


• Missional expenses were $9.1K, this was $2.7K above the budget for March. Of the spending in

this category, $5.3K is benevolence (ELCA and Noisy).




position and the AV (partially for the month of March) positions being open. The areas over

budget are publicity, and rotary club dues (misc. expense). Kari is checking on the copier costs

as the expected savings have not materialized.

• Operational expenses were below the ministry plan by $1.3K. We were over budget in Audio

Visual ($1.9K), due to two invoices (February and March) from techno gizmo. All other expense

categories were under budget in March. The operational expenses actuals also reflect a mortgage

payment of $15.0 K.





Cash Balances

The overall March cash balance was $70.2K and decreased $.7K from the February balance. The

operating fund had a positive balance of $2.7K and decreased by $10.9K from February. The total of

conduit funds was $.9K, increased by $.1K from February. The unallocated fund increased by $.9K to

$22.2K. The Benevolence fund (Tithe from branching out) increased by $.9K to $19.8K. Branching out

funds (less the tithe) has a positive balance of $24.6K and increased by $8.1K.


The March maintenance reserve balance is now zero.




March 2017 Report


Unallocated Reserve

As of March 2017, this fund balance is $22.2K. This increased $.9K, from the February balance. It is

effectively being used to cover the operational shortfall.


The total received as of the end of March was $197.8K.


tithe of $19.8K). Ending cash balance is $24.6K. No significant expenditures remain to be paid. The

finance team did discuss the plan to distribute the tithe to the FLDS, this has been deferred to see how

cash comes in the next several months.


March Unpaid Bills Carried Over to March

As of the end of March, all outstanding invoices have been paid. As identified earlier, MIF considers

us one month in arrears due to the missed September 2015 payment. I have instructed the accountant to

continue to make one payment per month, unless instructed by the council.



March. At this level, we are still paying $8 K in principal to go with the $7 K in interest. We will



payment schedule.


None at this time

April 2017 Report


Financial Report – April 2017 Presented to Faith Lutheran Church Council

May 7, 2017

The Finance Ministry Team met on April 4, 2017, and covered the following items.

• Opening prayer

• Review of April 2017 financial statements



• Closing prayer

Financial Summary:

Income/Expense (k$) April Delta to Budget

Income 94.7 -4.5

Expense 97.3 -7.6

Net -2.6 -3.1

Cash Position April Change from March

Operating -- -2.6

Conduit -.7 -1.7

Unallocated 23.2 +1.0



Total 72.2 +2.0

Monthly Highlights:

• Income for April was $94.7K.

o Total income was up by $19.4K vs. March and was $4.5K below the ministry plan for

April. April was a 5-week month with Easter.

o Total income averaged $18.9K per week in April. This was a very slight increase from

the March average of 18.8K.

o April showed a good improvement from March, but we continue to run below the ministry

plan for income. We are running behind by $36.0K for the first four months.

• Expenses paid in April were $97.386.2K. This was $7.6K below the ministry plan. Spending

was up by $11.1K from what was spent in March.



This budget underrun has started to become smaller as we have hired the video position

and the outreach position.

April 2017 Report




• April was a good month on the income side. This will need to be monitored closely. We

consumed $2.6K in operations cash in April, and reduced the operating cash balance by $9.1K

from the December 2016 ending balance.

• On a brighter note, the overall cash position increased by $2.0K due to continued strong

contributions to the Branching Out campaign. Overall cash flow is now at a minimum

manageable level, but the operating fund level of cash remains an ongoing concern.









one month in arears due to the missed payment in April of last year, we have no ability




done in April.








Detailed Summary of April 2017 Financial Statements

Income

For the month of April 2017, total operating income was $93.3K. Regular offering was $91.0K, and


Activities Income, (the new category of income), recorded income of $1.4K. Most this income was for

event fees for high school youth events ($.6K) and in April donations for Easter lilies ($.8K). The

expense for these items will show up in the expenses section, in some cases (youth events) in future

months.

April 2017 Report


The April 2017 financial report reflects $18.2K average weekly offerings for the month. April was a 5-

week month. This is an increase from the $17.9K received in March, and $16.5K received in February.




Expenses

For the month of April 2017, total operating expenses paid were $97.4K. This amount reflects debt


total expenses were $7.6K below the April budgeted expenses per the 2017 Ministry Plan of $105.0K.


• Missional expenses were $10.2K, this was $3.2K above the budget for April. Of the spending in

this category, $5.6K is benevolence (ELCA and Noisy). The one notable item is the cost of the

Easter Lilies was $2.2K (included in the total of $10.2K). The donations (recorded as income),

covered $.8K of the total cost.



under run. Administrative salaries are now slightly over budget due the AV position being filled

and the outreach position being filled. The areas of the budget are close to budget.

• Operational expenses were below the ministry plan by $1.3K. We were over budget in Audio

Visual ($1.1K), due purchasing a computer for the AV position. The first month of the quarter is

when we pay building and liability insurance, this causes the expense for the month to increase

substantially. The positive is it was budgeted that way so we have minimal budget variance. The

operational expenses actuals also reflect a mortgage payment of $15.0 K.





Cash Balances

The overall April cash balance was $72.2K and increased 2.0K from the March balance. The operating

fund was now has a zero balance and decreased by $2.7K from March. The total of conduit funds was a

-$.7K, this decreased by $1.7K from March. The conduit fund can go negative due to fund transfers from

the day school for payroll. The unallocated fund increased by $1.0K to $23.2K. The Benevolence fund

(Tithe from branching out) increased by $.5K to $20.3K. Branching out funds (less the tithe) has a

positive balance of $29.4K and increased by $4.8K.


The April maintenance reserve balance is now zero.




April 2017 Report


Unallocated Reserve

As of April 2017, this fund balance is $23.2K. This increased $1.0K, from the March balance. It is



The total received as of the end of April was $203.3K.


tithe of $20.3K). Ending cash balance is $29.4K. We will use $2.4K of branching out to cover the

cost of the window film to go on the windows between the sanctuary and narthex. No other significant

expenditures remain to be paid. The finance team did discuss the plan to distribute the tithe to the

FLDS, this has been deferred to see how cash comes in the next several months.


April Unpaid Bills Carried Over to April

As of the end of April, all outstanding invoices have been paid. As identified earlier, MIF considers us

one month in arrears due to the missed September 2015 payment. I have instructed the accountant to




April. At this level, we are still paying $8 K in principal to go with the $7 K in interest. We will continue

to make this payment monthly as we are able, until the 3.5-acre parcel of excess land is sold. At that

time, we will pay down the mortgage with the full amount of the proceeds and renegotiate a new payment

schedule.


None at this time

May 2017 Report


Financial Report – May 2017 Presented to Faith Lutheran Church Council

June 11, 2017

The Finance Ministry Team met on June 8, 2017, and covered the following items.

• Opening prayer

• Review of May 2017 financial statements



• Insurance Claim

• Fiscal Year alignment with Day School

• Closing prayer

Financial Summary:

Income/Expense (k$) May Delta to Budget

Income 86.4 -2.5

Expense 93.0 -1.6

Net -6.6 -.9

Cash Position May Change from April

Operating -6.6 -6.6

Conduit 1.1 +1.8

Unallocated 22.4 -.8

Benevolence Reserve 19.8 -.5

Branching Out 29.8 +.4

Total 66.5 -5.7

Monthly Highlights:

• Income for May was $86.4K.

o Total income was down by $8.3K vs. April and was $2.5K below the ministry plan for

May. April was a 5-week month with Easter.

o Total income averaged $21.6K per week in May. This was an increase from the April

average of 18.9K.

o May was a pretty good month with income averaging $21.6K per week, but we continue

to run below the ministry plan for income. We are running behind by $36.0K for the first

five months.

• Expenses paid in May were $93.0K. This was $1.6K below the ministry plan. Spending was

down by $4.4K from what was spent in April.



May 2017 Report


This budget underrun has started to become smaller as we have hired the video position

and the outreach position.

o Operational expenses were $.4K above the ministry plan. The actuals reflect a mortgage

payment of $15.0 K.

• May was a pretty good month on the income side. This will need to be monitored closely. We

consumed $6.6K in operations cash in May, and reduced the operating cash balance by $15.8K


• The overall cash position decreased by $5.7K in the month due to the operating fund usage of

$6.6K of cash. The branching out growth slowed as we paid for the window film, and the new

lectern in the month. Overall cash flow is now at a minimum manageable level, but the operating

fund level of cash remains an ongoing concern.









one month in arears due to the missed payment in September of 2015 of last year, we

have no ability to make up that payment now.



done in May.








May 2017 Report


Detailed Summary of May 2017 Financial Statements

Income

For the month of May 2017, total operating income was $84.4K. Regular offering was $81.3K, and

other income was $3.1K. Most the other income was noisy offering $1.1K, and rental income of $1.4K.

Activities Income, (the new category of income), recorded income of $2.0K. All this income was for

VBS. The expense for these items will show up in the expenses section, in some cases (youth events) in

future months.

The May 2017 financial report reflects $20.3K average weekly offerings for the month. This is an

increase from the $18.0K average YTD April.




Expenses

For the month of May 2017, total operating expenses paid were $97.4K. This amount reflects debt


total expenses were $7.6K below the May budgeted expenses per the 2017 Ministry Plan of $105.0K.


• Missional expenses were $6.2K, this was very close to budget for the month. Of the spending in

this category, $5.3K is benevolence (ELCA and Noisy).



under run. Administrative salaries are now over budget due the AV position being filled and the

outreach position being filled. Administration salaries are now over by $6.0K per month.

• Operational expenses were above the ministry plan by $.4K. We were over budget in Audio

Visual ($.7K), due purchasing a computer for the outreach position. The operational expenses

actuals also reflect a mortgage payment of $15.0 K.





Cash Balances

The overall May cash balance was $66.5K and decreased 5.7K from the April balance. The operating

fund was now has a negative balance and decreased by $6.6K from April. The total of conduit funds was

$1.1K, this increased by $1.8K from April. The conduit fund can go negative due to fund transfers from

the day school for payroll. The unallocated funds decreased $.8K to $22.4K. The Benevolence fund

(Tithe from branching out) decreased by $.5K to $19.8K. As a reminder, the board approved providing

the day school with $1,000 of funds to make an endowment deposit. Branching out funds (less the tithe)

has a positive balance of $29.8K and increased by $.4K.

May 2017 Report



The May maintenance reserve balance is now zero.




Unallocated Reserve

As of May 2017, this fund balance is $22.4K. This decreased by $.8K, from the April balance. It is



The total received as of the end of May was $208.2K.


tithe of $20.8K). Ending cash balance is $29.8K. No other significant expenditures remain to be paid.

The finance team did discuss the plan to distribute the tithe to the FLDS, this has been deferred to see

how cash comes in the next several months.


May Unpaid Bills Carried Over to May

As of the end of May, all outstanding invoices have been paid. As identified earlier, MIF considers us





May. At this level, we are still paying $8 K in principal to go with the $7 K in interest. We will continue

to make this payment monthly as we are able, until the 3.5-acre parcel of excess land is sold. At that

time, we will pay down the mortgage with the full amount of the proceeds and renegotiate a new payment

schedule.


Review the feasibility of moving the church fiscal year to align with the day school. The finance team

needs some time to study this issue in collaboration with the day school finance team. Several items

have been raised on timing, and the detail of the day school financial reporting. Matt Engelmann has

the action to assemble a team to work the issue.

June 2017 Report


Financial Report – June 2017 Faith Lutheran Church Council

Submitted July 23, 2017

The Finance Ministry Team met on July 10, 2017, and covered the following items.

• Opening prayer

• Review of June 2017 financial statements



• Insurance Claim


• Closing prayer

Financial Summary:

Income/Expense (k$) June Delta to Budget

Income 76.4 -12.5

Expense 91.7 -.4

Net -6.6 -12.9

Cash Position June Change from May

Operating -21.8 -15.2

Conduit -.5 -1.6

Building Fund 231.9 +231.9

Unallocated 22.4 0



Total 288.6 222.1

Monthly Highlights:

• Income for June was $76.4K.

o Total income was down by $10.0K vs. May and was $1.5K below the ministry plan for

June. May was a 4-week month.

o Total income averaged $19.1K per week in June. This was a decrease from the May

average of 21.6K.

o June was a lower month with income averaging $19.1K per week, but we continue to run

below the ministry plan for income. We are running behind by $51.1K for the first six

months of the ministry plan.

• Expenses paid in June were $91.7K. This was $.4K below the ministry plan. Spending was down

by $1.3K from what was spent in May.

o Missional expenses were $2.1K above the mission plan for the month. The staffing

June 2017 Report


increases have brought the total spending very close to the overall ministry spending plan.



• June was a weak month on the income side. This will need to be monitored closely. We

consumed $15.2K in operations cash in June, and reduced the operating cash balance by $31.1K


• The overall cash position increased by $222.1K in the month. This was almost entirely due to

receipt of the insurance check for the roof damage due to the hail storm earlier this year. Overall

cash flow looks very good, however we need to continue to monitor the operating funds carefully.













done in June.








June 2017 Report


Detailed Summary of June 2017 Financial Statements

Income

For the month of June 2017, total operating income was $76.4K. Regular offering was $71.2K, and

other income was $2.3K. Most the other income was noisy offering $.9K, and rental income of $.8K.

Activities Income, (the new category of income), recorded income of $2.9K. All this income was for

VBS. The expense for these items will show up in the expenses section, in some cases (youth events) in

future months.

The June 2017 financial report reflects $17.8K average weekly offerings for the month. This is a slight

decrease increase from the $18.2K average YTD June.




Expenses

For the month of June 2017, total operating expenses paid were $91.7K. This amount reflects debt


total expenses were $.4K below the June budgeted expenses per the 2017 Ministry Plan of $92.1K.


• Missional expenses were $8.7K, this was over budget for the month as two noisy items were paid

in the month, a VBS costs were recorded in the month. Of the spending in this category, $5.3K

is benevolence (ELCA and Noisy).



under run. Administrative salaries are now over budget due the AV position being filled and the

outreach position being filled. Administration salaries are now over by $5.0K per month.

• Operational expenses were below the ministry plan by $.4K. We were over budget in Audio

Visual ($1.1K), general maintenance was under plan by $3.5K. The operational expenses actuals

also reflect a mortgage payment of $15.0 K.





Cash Balances

The overall June cash balance was $288.6K and increased by 222.1K from the May balance. The

operating fund now has a negative balance and decreased by $15.2K from May. The total of conduit

funds is negative by $.5K, this decreased by $1.6K from May. The conduit fund can go negative due to

fund transfers from the day school for payroll. The unallocated funds had no change and has a $22.4K

balance. The Benevolence fund (Tithe from branching out) decreased by $.7K to $20.5K. Branching


June 2017 Report



The June maintenance reserve balance now has a balance of $231.9K.

The maintenance reserve balance is due to receipt of insurance proceeds to cover the cost of repairing

the church roof. The roof was damaged in the spring hail storm. To the extent practicable, additions to

this reserve are planned to be resumed in the future and continue until it is restored to an appropriate

level (to be recommended by the Finance Team). Due to our current financial situation, this is unlikely

to happen for some time.

Unallocated Reserve

As of June 2017, this fund balance is $22.4K. This did not change in the month of June. It is effectively

being used to cover the operational shortfall.


The total received as of the end of June was $215.2K.






June Unpaid Bills Carried Over to June

As of the end of June, all outstanding invoices have been paid. As identified earlier, MIF considers us





June. At this level, we are still paying approximately $8 K in principal to go with the $7 K in interest.

We will continue to make this payment monthly as we are able, until the 3.5-acre parcel of excess land

is sold. At that time, we will pay down the mortgage with the full amount of the proceeds and renegotiate

a new payment schedule.




have been raised on timing, and the detail of the day school financial reporting. Matt Engelmann has

the action to assemble a team to work the issue.

July 2017 Report


Financial Report – July 2017 Faith Lutheran Church Council

Submitted August 15, 2017

The Finance Ministry Team met on July 9, 2017, and covered the following items.

• Opening prayer

• Review of July 2017 financial statements


• Insurance Claim


• Closing prayer

Financial Summary:

Income/Expense (k$) July Delta to Budget

Income 88.8 -10.4

Expense 101.0 +2.2

Net -12.2 -12.6

Cash Position July Change from June


Conduit -1.7 -1.2


Unallocated 32.0 +9.6



Total 292.7 +4.2

Monthly Highlights:

• Income for July was $88.8K.

o Total income was up by $12.4K vs. June but was $10.4K below the ministry plan for

July. July was a 5-week month.

o Total income averaged $17.8K per week in July. This was a decrease from the June

average of 19.1K.

o July was a lower month with income averaging $17.8K per week. We continue to run

below the ministry plan for income. We are running behind by $61.5K for the first seven

months of the ministry plan.

• Expenses paid in July were $101.0K. This was $2.2K above the ministry plan for July. Spending

is heaviest in the first month of the quarter due to insurance payments that come due at that time.

Spending increased by $9.3K from what was spent in June.


July 2017 Report





• July was a weak month on the income side. This will need to be monitored closely. We

consumed $12.3K in operations cash in July, and reduced the operating cash balance by $43.3K


• On a slightly more positive note, we were in a similar position last year. At this point in 2016

the operating fund cash balance was -$35.7K versus this year -$43.3K.

• The overall cash position increased by $4.2K in the month. This was due to 1) receipt of an

additional check for the day school canopy damage due to the hail storm earlier this year, 2) a

gift deposited into the unallocated reserve 3) continued growth in the branching out and

benevolence reserve balance 4) offsetting the operating fund deficit. Overall cash flow looks

good, however we need to continue to monitor the operating funds carefully.













done in July.








July 2017 Report


Detailed Summary of July 2017 Financial Statements

Income

For the month of July 2017, total operating income was $87.0K. Regular offering was $85.7K, and other

income was $1.3K. Most the other income was noisy offering $.6K, and rental income of $.2K.

Activities Income, (the new category of income), recorded income of $1.8K. This income was for VBS

and the golf outing. The expense for these items will show up in the expenses section, in some cases

(youth events) in future months.

The July 2017 financial report reflects $17.1K average weekly offerings for the month. This is a slight

decrease from the $18.1K average YTD July.




Expenses

For the month of July 2017, total operating expenses paid were $101.0K. This amount reflects debt


total expenses were $2.2K above the July budgeted expenses per the 2017 Ministry Plan of $98.8K.


• Missional expenses were $11.5K, this was over budget for the month as VBS expenses were

recorded in July. Of the spending in this category, $5.4K is benevolence (ELCA and Noisy).

• The administration category was $.7K above the mission plan. We are under budget due to the

pastor position not being filled, however the other staff area are running over now that the AV

position and the outreach position being filled. Administration salaries are now over by $5.0K

per month.

• Operational expenses were below the ministry plan by $4.3K. We were under budget in Audio

Visual $1.7K, general maintenance was under plan by $2.7K. The operational expenses actuals






Cash Balances

The overall July cash balance was $292.7K and increased by 4.2K from the June balance. The operating

fund now has a negative balance of -$34.2K and increased (got worse) by $12.2K from June. The total

of conduit funds is negative by $1.7K, this increased (got worse) by $1.2K from June. The conduit fund

can go negative due to fund transfers from the day school for payroll. The unallocated funds ($32.0K)

increased by $9.6K due to an unallocated gift received in the month of July. The Benevolence fund

July 2017 Report





The July maintenance reserve balance now has a balance of $234.9K.


the church roof. The roof was damaged in the spring hail storm. To the extent practicable, additions to

this reserve are planned to be resumed in the future and continue until it is restored to an appropriate

level (to be recommended by the Finance Team). Due to our current financial situation, this is unlikely

to happen for some time.

Unallocated Reserve

As of July 2017, this fund balance is $32.0K. This did not change in the month of July. It is effectively

being used to cover the operational shortfall.


The total received as of the end of July was $220.3K.






July Unpaid Bills Carried Over to July

As of the end of July, all outstanding invoices have been paid. As identified earlier, MIF considers us





July. At this level, we are still paying approximately $8K in principal to go with the $7K in interest.







have been raised on timing, and the detail of the day school financial reporting. Jerry Gray is working

with the day school team to improve timing for inclusion in the main FMC finance report.

August 2017 Report


Financial Report – August 2017 Faith Lutheran Church Council

Submitted September 20, 2017

The Finance Ministry Team met on September 11, 2017, and covered the following items.

• Opening prayer

• Review of August 2017 financial statements


• Insurance Claim

• Fiscal Year alignment with day school

• Closing prayer

Financial Summary:

Income/Expense (k$) August Delta to Budget

Income 71.7 -17.1

Expense 100.6 +7.8

Net -28.9 -24.9

Cash Position August Change from July


Conduit -.7 +1.0

Building Fund 234.9 0

Unallocated 32.0 0



Total 267.9 -24.8

Monthly Highlights:

• Income for August was $71.7K.

o Total income was down by $17.1K vs. July and was $17.1K below the ministry plan for

August. Overall income for the month was very weak and will need to be addressed.

o Total income averaged $17.9K per week in August. This was a flat from the July average

of 17.8K. The ministry plan calls for $22.2K per week in August.

o August was a very low month with income averaging $17.9K per week. We continue to

run well below the ministry plan for income. We are running behind by $78.6K (total

income) for the first seven months of the ministry plan.

• Expenses paid in August were $100.6K. This was $7.8K above the ministry plan for August.

Spending was $.4K below what was spent in July.



August 2017 Report


o Operational expenses were $6.2K below the ministry plan. The actuals reflect a mortgage

payment of $15.0 K.

• August was a very weak month on the income side. This will need to be brought to the attention

of the congregation soon. We consumed $28.9K in operations cash in August, and reduced the


• The overall cash position decreased by $24.8K in the month. This is a very poor result and will

need to be addressed with the congregation. Overall cash flow looks good, however with out the

insurance money in the balance, our net cash balance would be $33.0K. Cash management will

now be a critical item.













done in August.








August 2017 Report


Detailed Summary of August 2017 Financial Statements

Income

For the month of August 2017, total operating income was $66.3K. Regular offering was $65.0K, and

other income was $1.3K. Most the other income was noisy offering $.8K, and rental income of $.6K.

Activities Income, (the new category of income), recorded income of $5.4K. This income was for youth

activities and the golf outing. The expense for these items will show up in the expenses section, in some

cases (youth events) in future months.

The August 2017 financial report reflects $16.3K average weekly offerings for the month. This is a

significant decrease from the $17.9K average YTD August.




Expenses

For the month of August 2017, total operating expenses paid were $100.6K. This amount reflects debt


total expenses were $7.8K above the August budgeted expenses per the 2017 Ministry Plan of $92.8K.


• Missional expenses were $7.1K, this was over budget for the month as we purchased the banners

for the sermon series. Of the spending in this category, $4.0K is benevolence (ELCA and Noisy).

• The administration category was $.4K below the mission plan for the month. We are under

budget due to the pastor position not being filled, however the other staff areas are running over

now that the AV position and the outreach position are filled. Administration salaries are now

over by $5.0K per month.

• Operational expenses were above the ministry plan by $6.2K. The overage was driven by AV

being over by $7.4K. We were over budget in Audio Visual due to the web site redesign, and

purchase of camera equipment and microphones now being used in advance of the new

equipment now on order. The operational expenses actuals also reflect a mortgage payment of

$15.0 K.





Cash Balances

The overall August cash balance was $267.9K and decreased by $24.8K from the July balance. The

operating fund now has a negative balance of -$63.0K and increased (got worse) by $28.9K from July.

The total of conduit funds is negative by $.7K, this decreased (got better) by $1.0K from July. The

conduit fund can go negative due to fund transfers from the day school for payroll. The unallocated funds

are at $32.0K, and did not change in August. The Benevolence fund (Tithe from branching out)

increased by $.3K to $21.3K. Branching out funds (less the tithe) has a positive balance of $43.4K and

August 2017 Report


increased by $2.8K.


The August maintenance reserve balance now has a balance of $234.9K. This had no change from last

month.


the church roof. The roof was damaged in the spring hail storm.




Unallocated Reserve

As of August 2017, this fund balance is $32.0K. This did not change in the month of August. It is



The total received as of the end of August was $223.3K.


tithe of $22.3K). Ending cash balance is $43.4K. The council has approved the video system at a cost

of $33.3K. This will be funded out of the branching out campaign. The finance team has discuss the

plan to distribute the tithe to the FLDS, this has been deferred to see how cash comes in the next

several months.


August Unpaid Bills Carried Over to August

As of the end of August, all outstanding invoices have been paid. As identified earlier, MIF considers

us one month in arrears due to the missed September 2015 payment. I have instructed the accountant to




August. At this level, we are still paying approximately $8K in principal to go with the $7K in interest.





Review the feasibility of moving the church fiscal year to align with the day school. The team feels

that we could incorporate the day school financials without changing the church fiscal year. The

finance team will continue to study the issue in collaboration with the day school finance team.

Matt will reach out to the Audit committee to discuss progress on the 2016 audit.

September 2017 Report


Financial Report – September 2017 Faith Lutheran Church Council

Submitted October 15, 2017

The Finance Ministry Team met on September 9, 2017, and covered the following items.

• Opening prayer

• Review of September 2017 financial statements


• Insurance Claim

• Fiscal Year alignment with day school

• Closing prayer

Financial Summary:

Income/Expense (k$) September Delta to Budget

Income 83.3 -5.6

Expense 94.4 -.4

Net -11.1 -5.2

Cash Position September Change from August


Conduit -.8 -.1



Benevolence Reserve 25.3 +4.0

Branching Out 31.5 -12.1

Total 249.3 -18.6

Monthly Highlights:

• Income for September was $83.3K.

o Total income was up by $11.6K vs. August and was $5.6K below the ministry plan for

September. Overall income for the month improved from August, but continues to be

below the ministry plan. September was basically complete prior to the congregation

meeting, October will be a test to see the response from the congregation.

o Total income averaged $20.8K per week in September. This was up $2.9K from the

August average of 17.9K. The ministry plan calls for $22.2K per week in September.

o We continue to run well below the ministry plan for income. We are running behind by

$84.3K (total income) for the first nine months of the ministry plan.

• Expenses paid in September were $94.8K. This was $.4K below the ministry plan for September.

Spending was $5.8K below what was spent in August.





o Operational expenses were $2.3K below the ministry plan. The actuals reflect a mortgage

payment of $15.0 K.

• September was better than August, but still running behind on the income side. The

congregational meeting was held on the last Sunday of the month, so any impact to the message

will be seen in October. We consumed $11.1K in operations cash in September, and reduced the


• The overall cash position decreased by $18.6K in the month. The cash results include paying for

the $16.6K down payment for the camera system. Overall cash flow looks good, however with

out the insurance money in the balance, our net cash balance would be $14.4K. Cash management

will now be a critical item.













done in September.






Gratitude, Faith, Prayer, and Diligence we will see our way through the challenges. Please pray

for a positive result from the congregation to the budget update.




Detailed Summary of September 2017 Financial Statements

Income

For the month of September 2017, total operating income was $73.8K. Regular offering was $73.2K,

and other income was $.6K. Most the other income was noisy offering $583.


activities and the golf outing. The expense for these items will show up in the expenses section, in some

cases (youth events) in future months.

The September 2017 financial report reflects $18.3K average weekly offerings for the month. This is an

improvement of the $16.3K average in August and is slightly above the $17.9K average YTD September.




Expenses

For the month of September 2017, total operating expenses paid were $94.4K. This amount reflects debt


total expenses were $.4K below the September budgeted expenses per the 2017 Ministry Plan of $94.8K.


• Missional expenses were $9.4K, this was over budget for the month as the cost of the golf

tournament was paid in September (income for the golf was recorded in income above). Of the

spending in this category, $3.7K is benevolence.

• The administration category was $1.1K below the mission plan for the month. We are under




• Operational expenses were below the ministry plan by $2.3K. The underrun was driven by the

general maintenance category being under by $2.1K. The operational expenses actuals also

reflect a mortgage payment of $15.0 K.





Cash Balances

The overall September cash balance was $249.3K and decreased by $18.6K from the August balance.

The operating fund now has a negative balance of $74.1K and increased (got worse) by $11.1K from

August. The total of conduit funds is negative by $.8K, this increased (got worse) by $.1K from August.

The conduit fund can go negative due to fund transfers from the day school for payroll. The unallocated



funds are at $32.7K, and increased by $.7K in September. The Benevolence fund (Tithe from branching

out) increased by $4.0K to $25.3K. Branching out funds (less the tithe) has a positive balance of $31.3K

and decreased by $12.1K (We had contributions into branching out cash of $4.5 and we made the deposit

of $16.6K on the camera system for a net of -12.1K).


The September maintenance reserve balance now has a balance of $234.9K. This had no change from

last month.






Unallocated Reserve

As of September 2017, this fund balance is $32.7K. This increased by $.7K in the month of September.

It is effectively being used to cover the operational shortfall.


The total received as of the end of September was $228.4K.


tithe of $22.8K), also in the month of September we paid the down payment for the camera system of

$16.6K. Ending cash balance is $31.3K. The council has approved the video system at a cost of

$33.3K. This will be funded out of the branching out campaign.


September Unpaid Bills Carried Over to September

As of the end of September, all outstanding invoices have been paid. As identified earlier, MIF

considers us one month in arrears due to the missed September 2015 payment. I have instructed the




September. At this level, we are still paying approximately $8K in principal to go with the $7K in

interest. We will continue to make this payment monthly as we are able, until the 3.5-acre parcel of

excess land is sold. At that time, we will pay down the mortgage with the full amount of the proceeds

and renegotiate a new payment schedule.






October 2017 Report


Financial Report – October 2017 Faith Lutheran Church Council

Submitted November 18, 2017

The Finance Ministry Team met on November 9, 2017, and covered the following items.

• Opening prayer

• Review of October 2017 financial statements


• Insurance Claim

• Improving check security with the Bank

• Closing prayer

Financial Summary:

Income/Expense (k$) October Delta to Budget

Income 92.0 -7.2

Expense 109.3 8.1

Net -17.4 -15.3

Cash Position October Change from September


Conduit -.6 +.2

Building Fund 229.9 -5.0


Benevolence Reserve 15.8 -9.5


Total 221.5 -27.8

Monthly Highlights:

• Income for October was $92.0K.

o Total income was up by $8.7K vs. September and was $7.2K below the ministry plan for

October. Overall income for the month improved from September, but continues to be

below the ministry plan. October was a five week month, and showed limited

improvement in giving after the congregation meeting in late September.

o Total income averaged $18.4K per week in October. This was down $2.4K from the

September average of 20.8K. The ministry plan calls for $19.8K per week in October.


$91.5K (total income) for the first ten months of the ministry plan.

• Expenses paid in October were $109.3K. This was $8.1K above the ministry plan for October.

Spending was up $14.9K than was spent in September. The first month of the quarter spending

is always higher than average, as property insurance, and workers compensation insurance are

due.

October 2017 Report



increases have brought us over the ministry plan for the month of October.

o Operational expenses were $1.6K above the ministry plan. The actuals reflect a mortgage

payment of $15.0 K.

• October was better than September, but still running behind on the income side. We need to see

how the congregation responds to the appeal at the annual meeting held on November 12. We

consumed $17.4K in operations cash in October.

• The overall cash position decreased by $27.8K in the month. The cash results include paying for

two benevolence items approved by the council, Briarwood Golf ($5.0K) and ELCA YAGM

($5.0K). Overall cash looks good, however without the insurance money in the balance, our net

cash balance would be a negative $8.4K. Response from the congregation to close the gap is

critical!









one month in arears due to the missed payment in October of 2015 of last year, we have

no ability to make up that payment now.



done in October.









October 2017 Report


Detailed Summary of October 2017 Financial Statements

Income

For the month of October 2017, total operating income was $92.0K. Regular offering was $84.6K, and

other income was $5.7K. Most the other income was a transfer from the benevolence reserve to cover

the Briarwood golf tournament $5.0k, and noisy offering of $.7M.


activities and disciple connections. The expense for these items will show up in the expenses section, in

some cases (youth events) in future months.

The October 2017 financial report reflects $16.9K average weekly offerings for the month. This is

slightly below the $17.8K average YTD October.




Expenses

For the month of October 2017, total operating expenses paid were $109.3K. This amount reflects debt


total expenses were $8.1K above the October budgeted expenses per the 2017 Ministry Plan of $101.3K.

Of this $8.1K delta, $5.0K was the Briarwood gold sponsorship


• Missional expenses were $12.8K, this was over budget for the month as Briarwood sponsorship

was paid in October. Of the spending in this category, $9.9K is benevolence (ELCA, Briarwood,

Noisy).

• The administration category was $.3K below the mission plan for the month. We are under




• Operational expenses were above the ministry plan by $1.6K. The overrun was driven by the

general maintenance category, We had a number of repairs that needed to be made (Doors at

LTTM and Plumbing repairs). The operational expenses actuals also reflect a mortgage payment

of $15.0 K.





October 2017 Report


Cash Balances

The overall October cash balance was $221.5K and decreased by $27.8K from the September balance.

The operating fund now has a negative balance of $91.5K and increased (got worse) by $17.4K from

September. The total of conduit funds is negative by $.6K, this decreased (got better) by $.2K from

September. The conduit fund can go negative due to fund transfers from the day school for payroll. The

unallocated funds are at $33.0K, and increased by $.3K in October. The Benevolence fund (Tithe from

branching out) decreased by $9.5K to $15.8K, this was to cover Briarwood golf tournament, and the

ELCA YAGM support approved by the council. Branching out funds (less the tithe) has a positive

balance of $35.0K and increased by $3.7K. The final payment for the camera system will come out of

that fund in November.


The October maintenance reserve balance now has a balance of $229.9K.






Unallocated Reserve

As of October 2017, this fund balance is $33.0K. This increased by $.3K in the month of October. It is



The total received as of the end of October was $232.5K.



of $33.3K. This will be funded out of the branching out campaign. Half of the video system was paid

in September, the second half payment for the video system will be made in November.


October Unpaid Bills Carried Over to October

As of the end of October, all outstanding invoices have been paid. As identified earlier, MIF considers

us one month in arrears due to the missed October 2015 payment. I have instructed the accountant to




October. At this level, we are still paying approximately $8K in principal to go with the $7K in interest.





October 2017 Report






November 2017 Report


Financial Report – November 2017 Faith Lutheran Church Council

Submitted December 19, 2017

The Finance Ministry Team met on December 11, 2017, and covered the following items.

• Opening prayer

• Review of November 2017 financial statements


• Insurance Claim

• Closing prayer

Financial Summary:

Income/Expense (k$) November Delta to Budget

Income 105.3 +16.4

Expense 102.4 +10.0

Net +2.9 + 6.4

Cash Position November Change from October

Operating -88.6 +2.9

Conduit -1.7 -1.1


Unallocated 33.0 0


Branching Out 22.0 -13.0

Total 210.7 -10.8

Monthly Highlights:

• Income for November was $105.3K.

o Total income was up by $13.3K vs. October and was $16.4K ABOVE the ministry plan

for November. Overall income for the month improved from October, and showed a

positive response to the message delivered at the congregation meeting. We still have a

year to date income underrun and have a significate deficit to make up in the month of

December.

o Total income averaged $26.3K per week in November. This was up $7.9K from the

October average of 18.4K.


$75.1K (total income) for the first eleven months of the ministry plan.

• Expenses paid in November were $102.4K. This was $10.1K above the ministry plan for

November. Spending was down slightly ($6.9K) from October. October is a heavy spend month

as the first month of the quarter spending is always higher than average, as property insurance,

and workers compensation insurance are due.




increases have brought us over the ministry plan for the month of November.


payment of $15.0 K.

• November was better than October, and we covered all expenses for the month, but we are still

running behind on the income side. We need further improvement on the income side in

December to see if we can close the gap further. We generated $2.9K more cash than we used

for the month of November.

• The overall cash position decreased by $10.8K in the month. The cash results include paying the

second (and final) installment for the camera system. The camera system payment in November

was $16.6K. Overall cash looks good, however without the insurance money in the balance, our

net cash balance would be a negative $19.2K. Response from the congregation to close the gap

in December is critical!









one month in arears due to the missed payment in November of 2015 of last year, we




done in November.











Detailed Summary of November 2017 Financial Statements

Income

For the month of November 2017, total operating income was $105.2K. Regular offering was $90.1K,

and other income was $15.1K. Most the other income was $12.5K from YMCA for rental income that

was received in November. Noisy offering was an additional $2.0K.

Activities Income, (the new category of income), recorded income of $.1K. This income was for youth



The November 2017 financial report reflects $22.5K average weekly offerings for the month. This is

significantly above the $18.2K average YTD November.




Expenses

For the month of November 2017, total operating expenses paid were $102.4K. This amount reflects

debt service of $15.0K. It also includes 5% benevolence/mission support payment, equal to $5.2K.

Overall, total expenses were $10.0K above the November budgeted expenses per the 2017 Ministry Plan

of $92.4K.


• Missional expenses were $13.5K, this was over budget for the month by $8.8K. Of the spending

in this category, $7.2K is benevolence (ELCA, and Noisy). We also had costs to rebrand Reach

Kids to Faith Kids ($1.7K), and a deposit for the summer youth event next summer ($3.8K).

• The administration category was $1.4K below the mission plan for the month. We are under

budget due to the associate pastor position not being filled, however the other staff areas are

running over now that the AV position and the outreach position are filled. Administration

salaries are now over by $5.4K per month.


Audio-Visual category ($1.8K) due to new projector bulbs. The general maintenance category

was also over ($1.1K) mainly due to repairing the LTTM doors. The operational expenses actuals






Cash Balances

The overall November cash balance was $210.7K and decreased by $10.8K from the October balance.

The operating fund now has a negative balance of $88.6K and decreased (IMPROVED) by $2.9K from

October. The total of conduit funds is negative by $1.7K, this increased (got worse) by $1.1K from



October. The conduit fund can go negative due to fund transfers from the day school for payroll. The

unallocated funds are at $33.0K, and had no change in November. The Benevolence fund (Tithe from

branching out) increased by $.4K to $16.2K. Branching out funds (less the tithe) has a positive balance

of $22.0K and decreased by $13.0K, this reduction was due to paying the final payment for the camera

system ($16.6K).


The November maintenance reserve balance is $229.9K, and did not change in November.






Unallocated Reserve

As of November 2017, this fund balance is $33.0K. This did not change in the month of November. It is



The total received as of the end of November was $236.6K.



of $33.3K. This will be funded out of the branching out campaign. Half of the video system was paid

in October, the second half payment for the video system was paid in November.


November Unpaid Bills Carried Over to November

As of the end of November, all outstanding invoices have been paid. As identified earlier, MIF

considers us one month in arrears due to the missed November 2015 payment. I have instructed the




November. At this level, we are still paying approximately $8K in principal to go with the $7K in






December 2017 Report


Financial Report – December 2017 Faith Lutheran Church Council

Submitted January 16, 2018

The Finance Ministry Team met on January 11, 2018, and covered the following items.

• Opening prayer

• Review of December 2017 financial statements


• Insurance Claim

• Closing prayer

Financial Summary:

Income/Expense (k$) December Delta to Budget

Income 185.9 +52.0

Expense 125.6 +28.8

Net +60.3 +23.2

Cash Position December Change from November

Operating -28.3 +60.3

Conduit - .6 +1.1





Total 330.1 +119.4

Monthly Highlights:

• Income for December was $185.9K.

o Total income was up by $80.6K vs. November and was $52.0K ABOVE the ministry plan

for December. Overall income for the month improved from November, and showed a

fantastic response to the message delivered at the congregation meeting.

o Total income averaged $37.2K per week in December. This was up $10.9K from the

November average of 26.3K.

o The gap to the operating income segment of the ministry plan of $1,154,099 was $64,920.

We raised $241,481 in the last 8 weeks of the year versus our target of $306,401.

• Expenses paid in December were $125.6K. This was $28.8K above the ministry plan for

December. Spending was up $23.2K from November. December is a heavy spend month with

the Christmas services and any year end activity.


increases have brought us over the ministry plan for the month of December. In addition



the staff gifts were recorded in December.


payment of $15.0 K.

• December was significantly better than November, and we covered all expenses for the month,

and made a significant recovery to our full year goals, but not quite a complete recovery on the

income side. We generated $60.3K more cash than we used for the month of December.

• The overall cash position improved by $119.4K in the month. In addition to the operating fund

increase of $60.3, an additional insurance check for $54.1K was received in December. All other

cash items increased slightly for the month of December. Overall cash looks good, however

without the insurance money in the balance, our net cash balance would be only $46.1K.









one month in arears due to the missed payment in December of 2015 of last year, we have

no ability to make up that payment now.



done in December.











Detailed Summary of December 2017 Financial Statements

Income

For the month of December 2017, total operating income was $184.1K. Regular offering was $177.2K,

and other income was $6.9K.




The December 2017 financial report reflects $35.4K average weekly offerings for the month. This is

significantly above the $19.8K average for the full year. December had 5 Sundays, and the year had 53

Sundays!




Expenses

For the month of December 2017, total operating expenses paid were $125.6K. This amount reflects

debt service of $15.0K. It also includes 5% benevolence/mission support payment, equal to $9.2K.

Overall, total expenses were $28.8K above the December budgeted expenses per the 2017 Ministry Plan

of $96.9K.


• Missional expenses were $21.7K, this was over budget for the month by $12.2K. Of the spending

in this category, $10.8K is benevolence (ELCA, and Noisy). We also had costs for the Marty

Party, gifts for guests, Poinsettias, and cost for the mission trip.

• The administration category was $7.4K above the mission plan for the month. We are under

budget due to the associate pastor position not being filled, however the other staff areas are

running over now that the AV position and the outreach position are filled. Administration

salaries are now over by $5.4K per month. The council also approved the year end bonus that

was recorded in the Administration category.


Audio-Visual category ($9.5K) the majority of this was for new TV’s across the campus as well

as some past due invoices from Techno Gizmo and Fellowship one.





Cash Balances

The overall December cash balance was $330.1K and increased by $119.4K from the November balance.

The operating fund finished the year with a negative balance of $28.3K and decreased (IMPROVED) by

$60.3K from November. The total of conduit funds is negative by $.6K, this decreased (improved) by

$1.1K from November. The conduit fund can go negative due to fund transfers from the day school for



payroll. The unallocated funds are at $33.3K, and had +.3K change in December. The Benevolence fund




The December maintenance reserve balance is $284.0K, and increased by $54.1K, as we received

additional money from the insurance company for the roof repair.


the church roof. The roof was damaged in the spring 2017 hail storm.




Unallocated Reserve

As of December 2017, this fund balance is $33.3K, and increased by $.3K in the month of December. It

is effectively being used to cover the operational shortfall.


The total received as of the end of December was $240.2K.


tithe of $24.0K). Ending cash balance is $25.3K. The video system approved by the council has been

installed and completely paid for.


December Unpaid Bills Carried Over to December

As of the end of December, all outstanding invoices have been paid. As identified earlier, MIF

considers us one month in arrears due to the missed December 2015 payment. I have instructed the




December. At this level, we are still paying approximately $8K in principal to go with the $7K in





Matt has connected with Steve on the Audit committee to discuss progress on the 2016 audit.

Recommended YE Financial Adjustments:

1) Move $1,500 from unallocated reserve to Benevolence to restore YAGM shortfall.

2) Move $28,343.89 from unallocated reserved to operating to clear the shortfall.

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